Shippers nowadays have several options in front of them to fulfill their global shipping needs. However, it becomes tough for them to move their goods abroad using only a single shipping method. Perhaps you need to move your goods through all the modes such as air, rail, and road. Then, how will you manage? In such scenarios, shippers need to combine all the shipping mediums to make their end-delivery possible. That is where Multimodal logistics services come into place. In this blog, we will point out everything Multimodal companies do, how they benefit you, and the challenges they face. Let’s begin!
What is Multimodal Transportation?
In multimodal transportation, logistics companies combine the different types of transport with moving their shipment from one place to another destination. In short, a single carrier arranges everything for the shipment to ensure complete delivery of the goods. No matter how many modes your shipment needs, the shippers need to sign only a single contract or Bill of Lading. Shippers don’t have to sign different contracts for each method they choose. In fact, everything becomes the responsibility of logistics services providers to ensure a smooth flow of goods on time.
What Benefits do Multimodal Logistics Services Offer Shippers?
One of the greatest fear of shippers is taking a follow-up of different carriers during the supply chain process till their goods are delivered. When you partner with only a single logistics services provider, you are likely to spend less time ensuring on-time delivery of your goods. You don’t have to take follow-ups from different carriers and focus better on your business. The transit time reduces, making it easier for companies to ship higher quantities at lesser costs.
When you choose multimodal logistics services providers, you don’t have to stress about the hassles during the transit. Whether it is customs clearance, loading, unloading, documentation, etc., it is their responsibility to handle everything cost-efficiently. Cost is a big question that comes to the mind of shippers while transporting their goods. When you choose a multimodal transport service, they ensure you get the best deals with the help of their global networking and expertise.
Do you know why multimodal services are the first choice of shippers? Primarily due to better coordination and communication. While dealing with intermodal logistics services, you have to coordinate with the different carriers to ensure shipment safety.
However, with multimodal logistics services, you sign a contract with a single logistics service and deal only with them. Here you don’t have to waste time tracking different carriers during different stages, and all you have to do is contact your multimodal services provider.
As you know that you need to deal with a single logistics service, the disruptions increases during the journey. When you deal with multiple carriers, it becomes tough to track each stage of your supply chain journey, and that increases the transit time. However, when you deal with multimodal services, you need to contact a single carrier, and they need to ensure your goods reach within the deadline at any costs.
What Challenges Multimodal Logistics Face During the Journey?
Now, as you understand how much multimodal logistics offer to shippers, it is time to learn how many challenges they face during the journey. Let’s find out:
Too Much Documentation
Handling extensive documentation is a significant milestone for shipping companies to achieve. As logistic services need to process the entire documentation alone, it becomes a strenuous job. They have to review and process all kinds of paperwork to ensure fewer hurdles during the journey. When they spend more time on the paperwork, the transit time increase, making it tougher to achieve deadlines cost-efficiently.
Another worrisome challenge for logistic services is updating their clients about every single detail of their shipment journey. Clients these days demand constant updates with real-time tracking facilities, and this is a big challenge for multimodal transport services during long shipment journeys. Now, they have to provide every single update of the shipment journey with advanced technology.
Supply Chain Uncertainties
Another significant challenge multimodal services face while shipping their goods is handling uncertainties during the journey. Many disruptions happen, such as natural calamities, vehicle breakdowns, road blockage, and many more. The logistics services have to deal with all the uncertainties on their own to reduce the transit time and ensure timely delivery.